Escada Is In Deep Trouble

>> The fate of embattled German fashion house Escada has taken a turn for the worse. The brand has suffered from weak sales for several seasons and the company collapse projected in May is currently looking probable, according to an interview with Escada chairman Bruno Saelzer published yesterday in German newspaper Welt Am Sonntag.

Saelzer confirmed the Escada group is in a difficult situation, indicating it had enough liquidity to last until August but not beyond; if an alternative solution is not found, the business will be dissolved after that point. The company has put a debt restructuring plan to its creditors which must be approved by 80 percent of them before July 31; otherwise, Saelzer said it would be “inevitable” that Escada cease trading because “98 out of the 99 possible measures” to save the company had already been taken.